Tax Compliance (SARS TCS PIN) and B-BBEE for South African Tenders: 2026 Guide

Do I still need a Tax Clearance Certificate for tenders?

No. SARS phased out the printed Tax Clearance Certificate and replaced it with the Tax Compliance Status (TCS) system. Instead of handing over a paper certificate, you obtain a TCS PIN through SARS eFiling and give that PIN to the organ of state (or it is verified automatically through the Central Supplier Database). The PIN lets them view your tax compliance status online in real time. The key difference: the PIN is dynamic, not a once-off snapshot. When an institution checks it, they see your status as it is at that moment, not as it was on the day the PIN was issued. So if you fall out of compliance (for example, an outstanding return or debt to SARS), the same PIN will then show you as non-compliant. There are two TCS types on eFiling — "Good Standing" (the one used for tenders and general business) and "Approval International Transfer" (AIT, used for moving funds offshore). The old separate "Tender" option was consolidated into Good Standing in April 2023, so for any bid you request Good Standing.

How do I get a SARS Tax Compliance Status (TCS) PIN for a tender?

You request it yourself through SARS eFiling at no cost — there is no charge for a TCS PIN. Log into your eFiling profile, activate the Tax Compliance Status function, view your "My Compliance Profile" (which shows whether your returns and payments are up to date across all tax types), then submit a Tax Compliance Status Request and select "Good Standing". Once SARS approves it, you are issued an overall compliance status and a PIN, which you can view on your TCS dashboard or have sent to you by SMS. You then provide that PIN (and your tax reference number) wherever the tender requires it. Before requesting the PIN, fix anything flagged on your compliance profile — outstanding returns, outstanding debt, or unregistered tax types — because the verifier sees your live status, not the status on the issue date.

What is B-BBEE and which levels matter for a tender?

Broad-Based Black Economic Empowerment (B-BBEE) measures how a business contributes to transformation, scored against a scorecard and expressed as a status level from Level 1 (best) down to Level 8, plus "Non-compliant". A better level earns more empowerment recognition and, in tenders, more preference points. How you prove your level depends on your annual turnover: an Exempted Micro Enterprise (EME) has turnover of R10 million or less and is automatically Level 4 (100% recognition) — or Level 2 if it is 51%–99% black-owned, or Level 1 if 100% black-owned; a Qualifying Small Enterprise (QSE) has turnover between R10 million and R50 million; and a generic (large) enterprise has turnover above R50 million. EMEs and black-owned QSEs can prove their status with a free sworn affidavit, while QSEs that are less than 51% black-owned and all generic enterprises must be verified by a SANAS-accredited verification agency against the relevant sector scorecard. A B-BBEE certificate or affidavit is valid for 12 months.

How does a small business get a free B-BBEE certificate (the EME affidavit)?

If your turnover is R10 million or less you are an EME and you do not pay a verification agency. You have two free routes. The affidavit route: complete the standard EME sworn affidavit (the dtic/B-BBEE Commission template), confirming your annual turnover, your black-ownership percentage and the resulting level, then have it signed and stamped by a Commissioner of Oaths. The stamped affidavit is a legally valid substitute for a B-BBEE certificate. The CIPC route: CIPC issues B-BBEE certificates for EMEs electronically at no cost through the CIPC eServices site, BizPortal, or a self-service terminal — though that route requires the application to be made by a director/member, generally excludes entities with foreign directors, and limits how many entities one person can apply for. Black-owned QSEs (turnover R10m–R50m) use the equivalent QSE affidavit. Important: the affidavit is a sworn legal statement, so over-stating turnover or ownership is an offence the B-BBEE Commission can act on — declare your real figures.

How do B-BBEE preference points work — 80/20 vs 90/10?

Government tenders are not awarded on price alone. Under the Preferential Procurement Regulations 2022, a bid is scored out of 100 points split into price plus "specific goals". The split depends on the value of the tender: 80/20 applies to tenders with a value up to R50 million (80 points for price, 20 for specific goals), and 90/10 applies to tenders above R50 million (90 for price, 10 for specific goals). The lowest acceptable price gets the full price points and others score proportionally less. The remaining 20 or 10 points go to the "specific goals" the organ of state has set for that particular tender. B-BBEE status level is the most common specific goal — a stronger level (Level 1 being best) generally earns more of those points — but the 2022 regulations let the institution decide the specific goals for each tender (which can include things like ownership by black people, women, youth, or persons with disabilities, or local production). Because the exact goals and how the points are allocated differ per tender, always read each bid document's specific-goals table rather than assuming a fixed national scale. The highest combined score normally wins, subject to the bid being responsive.

Do I need to register on the Central Supplier Database (CSD)?

Yes. The Central Supplier Database (CSD), run by National Treasury at secure.csd.gov.za, is the single supplier register that all national and provincial departments, municipalities and state-owned entities use. You generally cannot be awarded a government tender or be paid by an organ of state without an active, verified CSD profile. When you register, the CSD automatically verifies your tax status with SARS, your company details with CIPC, director IDs with Home Affairs, and your bank account — so for most tenders your tax compliance is confirmed through this CSD-SARS link rather than by you submitting a separate document. To register you need your CIPC registration number, income tax reference number, business bank account details with a recent bank confirmation letter, director ID numbers, your B-BBEE certificate or affidavit, and contact details for OTP verification; some bids also ask for your TCS PIN. On completion you receive a CSD supplier number and a unique registration reference number.

Is the new Public Procurement Act 2024 in force yet — what rules apply now?

As at mid-2026, the day-to-day rules above still apply. The Public Procurement Act 28 of 2024 was assented to by the President in July 2024 and published in the Government Gazette on 23 July 2024, but it is not yet in operation — it only takes effect on a date the President proclaims in the Government Gazette, and that proclamation has not been published. National Treasury published the draft General Public Procurement Regulations, 2026 for public comment on 16 April 2026 and later extended the comment period to 15 July 2026, but those regulations are still in draft. Until the Act is proclaimed, the Preferential Procurement Policy Framework Act, 2000 and the Preferential Procurement Regulations, 2022 remain in force, which is why the 80/20 and 90/10 systems and the TCS/CSD requirements described here are what governs your tender today. When the new Act and its regulations do commence (the Act allows commencement in phases for different categories of institution), the preference framework and set-aside rules will change, so check the National Treasury / OCPO site before relying on this for a bid dated after commencement.

Step by step

1. Log into SARS eFiling. Sign in to your registered SARS eFiling profile. If you are not registered, register first and link your income tax (and VAT/PAYE where applicable) reference numbers.
2. Activate Tax Compliance Status. Under the Tax Status menu, activate the Tax Compliance Status function. This is a one-time activation per profile.
3. Check your My Compliance Profile. Open My Compliance Profile to see whether your returns and payments are up to date across all tax types. Resolve any red flags — outstanding returns, debt owed to SARS, or unregistered tax types — before requesting a PIN.
4. Submit a Good Standing request. Select Tax Compliance Status Request and choose the "Good Standing" type (used for tenders and general business). Complete and submit the request to SARS.
5. Receive your TCS PIN. Once SARS approves it, an overall compliance status and a PIN are issued. View the PIN on your TCS dashboard or request it by SMS.
6. Register and verify on the CSD. Register on the Central Supplier Database at secure.csd.gov.za so your tax status is verified automatically with SARS. Provide the TCS PIN on the bid itself where the tender document specifically asks for it.
7. Keep your status compliant for the whole bid. Because the PIN reflects your status in real time, stay compliant from submission through award. File returns and settle SARS debt promptly so a verification check during evaluation does not show you as non-compliant.

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